FREQUENTLY ASKED QUESTIONS
Are you an MAI?
Yes. Christopher Krueger and Jason Krause maintain current MAI designations through the Appraisal Institute.
The MAI membership designation is held by professionals who provide a wide range of services on all types of real property related to providing opinions of value, evaluations, review, consulting and advice on investment decisions, among other things. Property types may include commercial, industrial, agricultural, residential, and vacant land.
To become a MAI Designated member of the Appraisal Institute, an individual must:
Have good moral character;
Be a Certified General Real Property Appraiser (or meet equivalency)
Hold bachelor's degree or higher (or be a Certified General Real Property Appraiser)
Meet standards and ethics requirements;
Pass rigorous education requirements;
Pass a final comprehensive examination;
Receive credit for specialized experience that meets strict criteria; and
Receive credit for the demonstration of knowledge requirement.
These individuals have the necessary commercial property valuation experience and knowledge to produce a valuation that ensures confidence. MAI Designated members agree to adhere to the Appraisal Institute Code of Professional Ethics and Standards of Professional Appraisal Practice, underscoring a commitment to sound and ethical professional practice.
The completion of continuing education requirements assures that MAI Designated members remain informed on trends and changes pertaining to real property valuation, enabling them to provide valuations that reflect the latest in professional practice.
The MAI designation has long been recognized by courts of law, government agencies, financial institutions, and investors as a mark of excellence in the field of real estate valuation and analysis.
Are you state certified?
Yes, we have a current Certified General Appraisal license in the State of Wisconsin. Temporary licenses can be obtained for work in other states where required.
What are the qualifications of a state licensed appraiser?
All states require appraisers to be state licensed or certified in order to provide appraisals to federally regulated lenders. Some states require appraisers to be licensed or certified to provide appraisals for other parties as well. To become licensed or certified, you must pass an examination that is administered by your state’s appraisal board. The Appraiser Qualifications Board (AQB) of The Appraisal Foundation is authorized by Congress to establish the minimum requirements for Certified General Real Property Appraiser and Certified Residential Real Property Appraiser classifications, and the AQB provides recommended minimum requirements for the Licensed Real Property Appraiser and Trainee classifications.
If I am going to use the appraisal for a loan from a bank, can I engage the appraisal directly?
No. Federal banking regulations (FIRREA) does not allow the use of an appraisal ordered by a borrower to be used by the lender. This is due to potential advocacy and bias in the report. We suggest contacting your lender and having them engage us directly.
Do you appraise residential properties?
Generally, no. We focus on commercial properties. However there are cases in which we will appraise a single family residential home. For example, if it is part of a larger portfolio, is a part of a large tract of land, there may be a change in it's highest and best use, or similar situations.
How long will it take to complete an appraisal?
It depends upon the property type and location. It may vary from less than one week to several weeks, or even months. In most cases an appraisal requires between 2-4 weeks but can be expedited on an as needed basis.
What property types do you appraise?
We are familiar with, and qualified to appraise nearly any property type including office, industrial, retail, multi-family, hospitality, institutional, special use and vacant land. If we are not familiar with a property type we take necessary steps under the competency provision of USPAP to gain knowledge and experience to complete the assignment competently.
What type of appraisal reports are available?
Written appraisal reports must be prepared with the standards of either 1.) Appraisal Report, or 2.) Restricted Appraisal Report.
The difference between the two appraisal report options is in the content and level of information provided. The purpose of the appraisal report will generally determine the level of analysis to be provided, which will determine which report type to deliver to the client. A Restricted Appraisal report is only intended for one party’s use (the client). If the client would like to have another party utilize a particular appraisal report, then an Appraisal Report will have to be generated.
Additionally, a Restricted Appraisal report presents only a portion of the full data used in the valuation process, with additional supporting information and analysis retained in the appraiser’s work file. To go further, if a property owner would like to know the market value of his/her real estate holdings, for his/her own personal use and planning, then a Restricted Appraisal report would be sufficient reporting method. However, if a property owner would like to know the market value of his or her real estate holdings, in order for a potential sale of the real estate holdings, where a real estate agent/broker will utilize the report, then an Appraisal Report would be the appropriate reporting method.
Generally, a Restricted Appraisal report is a less-expensive option; however, as mentioned above, this reporting option may not always be appropriate.
What is the difference between an appraisal and my tax assessment?
The Tax Assessment is, by State Law, required to be performed by a municipality at regular intervals that often can be years apart in order to fairly levy annual taxes against real estate located in its jurisdiction. Its purpose therefore is to provide a basis for collecting the taxes necessary to meet the annual budget, not to provide an eventual buyer the price they should pay for that property. Furthermore, Assessors may not even be licensed appraisers, or they may not have even seen each property assessed, and as a result not consider recent property improvements or it’s current condition. Much of their information is taken from public record and may not necessarily be current or accurate for selling price purposes.
An Appraisal, on the other hand, is ordered for the specific purpose of determining the current market value (sales price) of a specific piece of real estate on a specific date. The appraiser must be licensed and provide a valuation that represents the market value of a property. The appraiser relies on current market data and performs an in depth analysis of both the market and the subject property.